Essent Group Ltd. Announces Fourth Quarter & Full Year 2025 Results and Increases Quarterly Dividend

Essent Group Ltd. and Subsidiaries

Financial Results and Supplemental Information (Unaudited)

Quarter and Year Ended December 31, 2025

Exhibit A

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

Exhibit B

Condensed Consolidated Balance Sheets (Unaudited)

Exhibit C

Consolidated Historical Quarterly Data (Unaudited)

Exhibit D

Annual Segment Results (Unaudited)

Exhibit E

Historical Quarterly Segment Information (Unaudited)

Exhibit F

Mortgage Insurance - Historical Quarterly Data

Exhibit G

Mortgage Insurance - New Insurance Written

Exhibit H

Mortgage Insurance - Insurance in Force and Risk in Force

Exhibit I

Mortgage Insurance - Vintage Data

Exhibit J

Mortgage Insurance - Outward Reinsurance Vintage Data

Exhibit K

Mortgage Insurance - Geographic Data

Exhibit L

Mortgage Insurance - Rollforward of Defaults and Reserve for Losses and LAE

Exhibit M

Mortgage Insurance - Detail of Reserves by Default Delinquency

Exhibit N

U.S. Mortgage Insurance Company Capital

Exhibit O

Reinsurance

Exhibit P

Cash & Investments

Exhibit A

Essent Group Ltd. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended December 31,

Year Ended December 31,

(In thousands, except per share amounts)

2025

2024

2025

2024

Revenues:

Direct premiums written

$

279,255

$

279,008

$

1,107,317

$

1,098,603

Ceded premiums

(41,378

)

(39,499

)

(147,853

)

(132,023

)

Net premiums written

237,877

239,509

959,464

966,580

Decrease in unearned premiums

4,852

4,956

24,254

24,302

Net premiums earned

242,729

244,465

983,718

990,882

Net investment income

59,223

56,559

236,517

222,070

Realized investment losses, net

(188

)

(114

)

(923

)

(2,350

)

Income from other invested assets

3,942

6,889

17,586

7,375

Other income

6,698

7,228

24,037

24,927

Total revenues

312,404

315,027

1,260,935

1,242,904

Losses and expenses:

Provision for losses and LAE

56,073

40,975

149,337

81,220

Other underwriting and operating expenses

63,653

70,951

257,040

270,874

Interest expense

8,149

8,151

32,696

35,319

Total losses and expenses

127,875

120,077

439,073

387,413

Income before income taxes

184,529

194,950

821,862

855,491

Income tax expense

29,547

27,050

131,893

126,088

Net income

$

154,982

$

167,900

$

689,969

$

729,403

Earnings per share:

Basic

$

1.62

$

1.60

$

6.97

$

6.92

Diluted

1.60

1.58

6.90

6.85

Weighted average shares outstanding:

Basic

95,772

104,963

98,999

105,394

Diluted

96,664

106,104

100,023

106,550

Net income

$

154,982

$

167,900

$

689,969

$

729,403

Other comprehensive income (loss):

Change in unrealized appreciation (depreciation) of investments

13,440

(113,705

)

151,999

(23,488

)

Comprehensive income

$

168,422

$

54,195

$

841,968

$

705,915

Exhibit B

Essent Group Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

December 31,

December 31,

(In thousands, except per share amounts)

2025

2024

Assets

Investments

Fixed maturities available for sale, at fair value

$

5,455,593

$

5,112,697

Short-term investments available for sale, at fair value

648,492

764,024

Total investments available for sale

6,104,085

5,876,721

Other invested assets

382,513

303,900

Total investments

6,486,598

6,180,621

Cash

123,049

131,480

Accrued investment income

47,371

43,732

Accounts receivable

51,267

55,564

Deferred policy acquisition costs

9,547

9,653

Property, equipment and software, net

49,189

41,871

Prepaid federal income tax

513,425

489,600

Goodwill and acquired intangible assets, net

78,153

79,556

Other assets

82,404

79,572

Total assets

$

7,441,003

$

7,111,649

Liabilities and Stockholders' Equity

Liabilities

Reserve for losses and LAE

$

446,822

$

328,866

Unearned premium reserve

91,730

115,983

Net deferred tax liability

465,351

392,428

Senior notes due 2029, net

495,301

493,959

Other accrued liabilities

185,072

176,755

Total liabilities

1,684,276

1,507,991

Commitments and contingencies

Stockholders' Equity

Common shares, $0.015 par value:

Authorized - 233,333; issued and outstanding - 95,456 shares in 2025 and 105,015 shares in 2024

1,432

1,575

Additional paid-in capital

649,895

1,214,956

Accumulated other comprehensive income (loss)

(151,985

)

(303,984

)

Retained earnings

5,257,385

4,691,111

Total stockholders' equity

5,756,727

5,603,658

Total liabilities and stockholders' equity

$

7,441,003

$

7,111,649

Return on average equity

12.1

%

13.6

%

Exhibit C

Essent Group Ltd. and Subsidiaries

Supplemental Information

Consolidated Historical Quarterly Data (Unaudited)

2025

2024

December 31

September 30

June 30

March 31

December 31

(In thousands, except per share amounts)

Revenues:

Net premiums earned

$

242,729

$

246,332

$

248,809

$

245,848

$

244,465

Net investment income

59,223

59,795

59,289

58,210

56,559

Realized investment losses, net

(188

)

(425

)

(129

)

(181

)

(114

)

Income from other invested assets

3,942

1,770

4,466

7,408

6,889

Other income (1)

6,698

4,358

6,708

6,273

7,228

Total revenues

312,404

311,830

319,143

317,558

315,027

Losses and expenses:

Provision for losses and LAE

56,073

44,922

17,055

31,287

40,975

Other underwriting and operating expenses

63,653

59,498

62,765

71,124

70,951

Interest expense

8,149

8,251

8,148

8,148

8,151

Total losses and expenses

127,875

112,671

87,968

110,559

120,077

Income before income taxes

184,529

199,159

231,175

206,999

194,950

Income tax expense (2)

29,547

34,944

35,836

31,566

27,050

Net income

$

154,982

$

164,215

$

195,339

$

175,433

$

167,900

Earnings per share:

Basic

$

1.62

$

1.69

$

1.95

$

1.71

$

1.60

Diluted

1.60

1.67

1.93

1.69

1.58

Weighted average shares outstanding:

Basic

95,772

97,400

100,037

102,881

104,963

Diluted

96,664

98,519

101,059

103,946

106,104

Book value per share

$

60.31

$

58.86

$

56.98

$

55.22

$

53.36

Return on average equity (annualized)

10.8

%

11.5

%

13.8

%

12.5

%

11.9

%

Senior debt & credit facility:

Borrowings outstanding

$

500,000

$

500,000

$

500,000

$

500,000

$

500,000

Undrawn committed capacity

$

500,000

$

500,000

$

500,000

$

500,000

$

500,000

Weighted average interest rate (end of period)

6.25

%

6.25

%

6.25

%

6.25

%

6.25

%

Debt-to-capital

7.99

%

8.01

%

8.10

%

8.12

%

8.19

%

Cash and investments available for sale at the holding companies

$

1,268,579

$

1,038,747

$

995,032

$

1,016,368

$

1,052,900

(1) Other income includes net favorable (unfavorable) changes in the fair value of embedded derivatives associated with certain of our third-party reinsurance agreements, which for the quarters ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024 were ($526), ($858), ($29), ($150), and $204, respectively.

(2) Income tax expense for the quarters ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025 and December 31, 2024 includes $366, $493, $1,112, $1,561, and $1,591, respectively, of discrete tax expense associated with realized and unrealized gains and losses. Income tax expense for the quarters ended December 31, 2025, September 30, 2025 and December 31, 2024 also include ($396), ($828), and ($1,252), respectively, of favorable adjustments related to prior year tax returns. Income tax expense for the quarter ended March 31, 2025 also includes ($742) of excess tax benefits associated with the vesting of common shares and common share units.

Exhibit D

Essent Group Ltd. and Subsidiaries

Supplemental Information

Annual Segment Results (Unaudited)

The following tables set forth comparative annual financial information for our two reportable business segments, Mortgage Insurance and Reinsurance, our Corporate & Other category and our consolidated results for the years ended December 31, 2025 and 2024 (unaudited). Our Corporate & Other category is used to reconcile our reportable business segments to consolidated results and includes business activities associated with our title insurance operations, income and losses from holding company treasury operations, and general corporate operating expenses not attributable to our operating segments.

Prior to December 31, 2025, we disclosed one reportable segment, Mortgage Insurance, which was comprised of "U.S. mortgage insurance" and "GSE and other mortgage risk share." Our mortgage insurance business and GSE and other mortgage risk share business each represented operating segments that were aggregated and disclosed as one reportable segment based on their shared economic characteristics and the similarities between the two operating segments. In the fourth quarter of 2025, Essent Re entered the Lloyd's of London market to reinsure certain property and casualty risks beginning in the first quarter of 2026. Considering the expansion of business and types of risks reinsured at Essent Re, our Chief Operating Decision Maker began to assess the performance of all third-party reinsurance as an operating segment as of December 31, 2025. To reflect this change, the GSE and other mortgage risk share operating segment is no longer aggregated with U.S mortgage insurance and all third-party reinsurance is now disclosed as a separate reportable segment: Reinsurance. All prior period segment information has been recast to conform to the new segment presentation.

Year Ended December 31, 2025

Year Ended December 31, 2024

(In thousands)

Mortgage Insurance

Reinsurance

Corporate & Other

Consolidated

Mortgage Insurance

Reinsurance

Corporate & Other

Consolidated

Revenues:

Net premiums earned

$

866,743

$

60,609

$

56,366

$

983,718

$

855,793

$

68,883

$

66,206

$

990,882

Net investment income

174,358

20,271

41,888

236,517

164,469

18,872

38,729

222,070

Realized investment gains (losses), net

(870

)

6

(59

)

(923

)

(2,343

)

—

(7

)

(2,350

)

Income from other invested assets

8,267

—

9,319

17,586

7,171

—

204

7,375

Other income

5,111

8,708

10,218

24,037

4,896

9,256

10,775

24,927

Total revenues

1,053,609

89,594

117,732

1,260,935

1,029,986

97,011

115,907

1,242,904

Losses and expenses:

Provision for losses and LAE

145,373

310

3,654

149,337

75,156

26

6,038

81,220

Compensation and benefits

64,392

4,547

61,011

129,950

67,985

4,171

64,236

136,392

Premium and other taxes

23,596

52

2,181

25,829

22,951

56

1,497

24,504

Ceding commission

(28,669

)

1,410

—

(27,259

)

(25,144

)

896

—

(24,248

)

Other underwriting and operating expenses

42,570

4,136

81,814

128,520

41,168

3,661

89,397

134,226

Net operating expenses before allocations

101,889

10,145

145,006

257,040

106,960

8,784

155,130

270,874

Corporate expense allocations

38,077

1,491

(39,568

)

—

43,003

784

(43,787

)

—

Operating expenses after allocations

139,966

11,636

105,438

257,040

149,963

9,568

111,343

270,874

Interest expense

—

—

32,696

32,696

—

—

35,319

35,319

Income (loss) before income taxes

$

768,270

$

77,648

$

(24,056

)

$

821,862

$

804,867

$

87,417

$

(36,793

)

$

855,491

Loss ratio (1)

16.8

%

0.5

%

8.8

%

—

%

Expense ratio (2)

16.1

19.2

17.5

13.9

Combined ratio

32.9

%

19.7

%

26.3

%

13.9

%

(1) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned.

(2) Expense ratio is calculated by dividing operating expenses after allocations by net premiums earned.

Exhibit E

Essent Group Ltd. and Subsidiaries

Supplemental Information

Historical Quarterly Segment Information (Unaudited)

Mortgage Insurance

2025

2024

December 31

September 30

June 30

March 31

December 31

($ in thousands)

Revenues:

Net premiums earned

$

212,674

$

215,683

$

220,262

$

218,124

$

211,682

Net investment income

43,627

44,265

43,676

42,790

41,880

Realized investment losses, net

(218

)

(427

)

(124

)

(101

)

(120

)

Income (loss) from other invested assets

2,044

(605

)

3,619

3,209

2,925

Other income

1,149

800

1,614

1,548

1,893

Total revenues

259,276

259,716

269,047

265,570

258,260

Losses and expenses:

Provision for losses and LAE

55,159

44,171

15,323

30,720

37,236

Compensation and benefits

14,727

15,388

15,667

18,610

17,029

Premium and other taxes

6,038

6,010

5,984

5,564

5,955

Ceding commission

(7,526

)

(7,328

)

(7,054

)

(6,761

)

(6,799

)

Other underwriting and operating expenses

11,816

10,005

10,028

10,721

10,809

Net operating expenses before allocations

25,055

24,075

24,625

28,134

26,994

Corporate expense allocations

9,213

7,081

8,979

12,804

10,431

Operating expenses after allocations

34,268

31,156

33,604

40,938

37,425

Income before income tax expense

$

169,849

$

184,389

$

220,120

$

193,912

$

183,599

Loss Ratio (1)

25.9

%

20.5

%

7.0

%

14.1

%

17.6

%

Expense Ratio (2)

16.1

14.4

15.3

18.8

17.7

Combined Ratio

42.0

%

34.9

%

22.3

%

32.9

%

35.3

%

(1) Loss ratio is calculated by dividing the provision for losses and LAE by net premiums earned.

(2) Expense ratio is calculated by dividing operating expenses after allocations by net premiums earned.

Exhibit E, continued

Essent Group Ltd. and Subsidiaries

Supplemental Information

Historical Quarterly Segment Information (Unaudited)

Reinsurance

2025

2024

December 31

September 30

June 30

March 31

December 31

($ in thousands)

Revenues:

Net premiums earned

$

14,696

$

16,304

$

13,875

$

15,734

$

16,181

Net investment income

4,913

5,302

5,216

4,840

4,311

Realized investment gains, net

6

—

—

—

—

Other income

2,255

1,591

1,909

2,953

1,991

Total revenues

21,870

23,197

21,000

23,527

22,483

Losses and expenses:

Provision for losses and LAE

206

65

36

3

18

Compensation and benefits

961

1,180

1,126

1,280

1,008

Premium and other taxes

17

8

16

11

13

Ceding commission

580

433

144

253

252

Other underwriting and operating expenses

1,179

944

1,100

913

970

Net operating expenses before allocations

2,737

2,565

2,386

2,457

2,243

Corporate expense allocations

516

502

263

210